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Business evaluation

Let me guess … Do you think – you know everything business and don’t activity analysis?

This is often I hear … but if I say that you can:

  • Do you need to move a lot more intensively, faster, and with lower costs?
  • Can you create a system that will control only the essential indicators, even during the holidays?
  • You will have more time …
  • You work less and more will earn …
  • You will be able to easily create a system – to measure the value created by the company for the company …

Did you think:

How much would you save today if you had done it half a year ago?

And when the monthly amount is multiplied by 12 months = savings of the year = earnings?

Where do you spend your money now?

Let’s take an example:

If we get ill, we go to the doctor … He makes a blood test and adds medicines, vitamins to strengthen the immune system … 

Usually the test  looks like this and if we are not a doctor, it’s unlikely or by looking at such information, we will be able to determine the diagnosis we are suffering from, or how likely we can strengthen the immune system so that the body begins to recover more quickly …

There is the same thing in a business or business …

An assessment of business efficiency shows the type of disease that a company suffers, where it needs to be strengthened, and how to rebuild performance indicators in order to be effective and profitable.

You might want to say – nonsense … how can a company be ill?

It’s quite simple – every company has its own disease, maybe it does not have the cash flow it needs, maybe its quality not quite high, it may have a lot of assets where it invests money, but it does not make a profit, or it may be that the owner’s activities become more and more indescribable and want change, then in this case there is no longer any interest in how to improve, where and how much to invest in order to bring the product or service to the best of the market … and of course there are many other things …

In business efficiency assessment, we can see what interfaces and which indicators are not good enough, which we can improve. now that the company is working at full intensity and earning the highest revenues and profits …

In the graphs, you can see how the key performance indicators of individual companies interact with each other:

As you can see, the graphs are completely different, which means that the activities of the company are completely differently organized, because of different priorities, different needs of the owners and the attitude of the business itself.

Sometimes it is enough to bring a little clarity from the country and everything changes drastically.

Let’s take an example from life – we always see better what our children or colleagues need, how better and when we are in a difficult life situation, we seek advice or opinion from the outside. Why is this happening?

And here again we are faced with the question: is not another person better able to know my life than I myself? ? ?

The same is true of business. BUSINESS, MONEY, and PEOPLE meet here.

When you really try everything, but there is no result you want, you’ll start looking for experts who will be familiar with business, finance and human psychology.

People who do not have a direct interest in retaining their jobs in the company, because they will not be forgiven, as such people usually work for themselves and receive remuneration to the extent that they create value in that company, not only because they receive a fixed salary and thus secure the future financially, because the employer pays a salary and pays solid taxes to the state.

If you have the same opinion – you might really want an expert to look at your business situation and maybe it’s time to change a bit, because competitors also do not use, the environment changes, and you yourself have the feeling that something can be better, somewhere you can save, and something can be reduced.

How is business efficiency evaluated?

Each company has a balance sheet, a profit loss statement. We start with them, because there is a huge amount of information among the numbers … for example – how is managed business, what management approach, what money policy, how business is organized, and what is behind the figures that are in the balance sheet, but they are not, perhaps if is in the shade, which is also accepted in our country …

And you as a manager – what do you usually do with the old historical data that a “some” bookkeeper has prepared?

You just leave them, archive them and stop using them because it’s a story … These data are only liked by the Tax Inspectorate, because you pay taxes to the state and if something does not match or you are interesting to the Tax Inspectorate or Sodra, then you will have to spend a lot of time on authority servants, because they have the task of audit the company …

Do you think about what kind of useful information you could deduct yourself from data that is outdated, even though it’s your story that may have created an experience.

If the experience is used wisely, it has power, strength, and influence on further work and life … This is your potential for your life, but you choose for yourself – whether it raises you, or you want to continue to live downstream …

When we evaluate business efficiency, we can answer to many questions, to introduce the clarity of what is happening in your activity, why it is as it is and how it can be changed, in the direction that you see your activity maybe 3 or 10 years ahead …

The questions I most often hear when talking about business efficiency assessment and let’s discuss them:

  1. What was the profitability of the activity over different periods?
  2. How was the profit earned?
  3. What is the return on investment?
  4. What is the collection of money in days, because you are constantly experiencing a cash deficit?
  5. How are the fees charged?
  6. How can performance indicators help you figure out the value of a company’s stock outflow?
  7. How much is my business worth?
  8. How to increase revenue?
  9. How to increase profits?
  10. How to accelerate development and have lower costs?
  11. How to motivate employees?
  12. How to create a company motivation system?
  13. Why are motivating employees only after a couple of months when raising salaries?
  14. How to combine the entire company system to earn the maximum profit?
  15. How to control a company because there is no time to be in the work place?
  16. How to manage risk?
  17. How to attract new customers?

And many other daily issues that are encountered in the activities.

Let’s look at the example:

The company is already working for five years, prepares profit-loss statements annually, provides tax and registry center, financial reports remain in the company and are forgotten about them. If we use balance sheet data – we can graphically see the trends of individual periods and the whole period, to see the weak points that “call” the help – these are loss centers in the company, they “eat” not only earned money and profits, but also your time !!!

The most commonly encountered business situations are:

  • Earning a good profit margin or getting lost? – Think – how much money and time are spent to deal with unwanted situations?
  • There is always a lack of money … Why? – What is the monetary policy for your business?
  • There is no necessary information for the manager at the right time … This requires systematic data on profitability, intensity, resources, resources and finances.
  • How to motivate a worker to achieve a result? -What is the motivation and control policy in the company?
  • I am the owner, but I am dependent on the influence of suppliers … The question is – who owns your business – suppliers, you, or business you?
  • I have a group of companies, but one business is profitable and the other is not …
  • What is your business policy as the owner?
  • I’m a co-owner of a conflict with my partner and “business rushes down” goes awry, but I can not do anything because the co-owner does not agree with the decisions …
  • I have a business that is thriving, but I do not see any prospects for expanding it …
  • I want to combine a few businesses, but I do not want to lose a loss …
  • I have more debt than I can earn from a business …
  • I want to sell a business, but I do not know its price …
  • Business has taken my owner’s personal money and I’m tired of such a business, I want to sell it or close it … Business has become a burden …
  • I can not understand what I have to do to earn a profit or increase income …
  • And other day-to-day situations …

Who solves if I go to the company’s performance analysis?

We bring historical figures from the balance sheet and profit loss statement into a program that compiles the data and converts the indicators into three groups-profitability, solvency and performance.

By these indicators, we obtain graphically displayed information from which we can easily deduct the company’s strengths and weaknesses, hidden trends or “invisible symptoms of company illnesses”, which we can immediately turn into profitable solutions.

What do you get after doing business efficiency analysis?

  • You get all analytical information about which models are chronic and repetitive year after year, which shows the company’s management policy and what can be improved;
  • The graphs illustrate the links between business management, finance, and profitability.
  • You get full 16-page details of activity indicators and their explanations.
  • You get my business as a financial analyst for 1 hour, advice, detailed explanations about the situation of your company.
  • During the consultation, you can submit questions that I will answer, provide recommendations and justify the situation.
  • If you continue to collaborate – we can extend 6, 9, or 12 months to directly integrate solutions into practice in that period, because it takes time.

You can answer the questions yourself from the provided 16-page report:

  • How is fixed assets used?
  • How is current assets managed?
  • How much wealth does profit / income?
  • What is the effect of depreciation?
  • What is the return on assets?
  • How do I finance a business for the “X” day?
  • What is working capital?
  • How are money managed and where are they used?
  • What is the monetary policy of the company?
  • What is the company’s solvency?
  • What is working capital?
  • What is the return on investment?
  • How do property owners change?
  • What is the trend of property change?
  • What is the return on investment money?
  • What is the cost of collection, payment policy in the company?
  • How much does a company borrow money?
  • How much property can cover interest?
  • What is the structure of the balance sheet, profit and loss account and cash flow?
  • How do financial and business management combine together?
  • What are the “chronic illnesses” who eat their profits and money?
  • What are the untapped reserves in the company?
  • What are the policy decisions in a company, their effectiveness?
  • What is the efficiency of employees?
  • What management decisions could be changed to get maximum results?
  • How are parts of the business structure working? Money, wealth, employees?
  • How much can a company expand?
  • What is its growth potential?
  • What is the impact on the activity and its profitability in making decisions?
  • How are the decisions presented in the financial statements?
  • What are the company’s main indicators of profitability, activity and solvency?
  • How is profitability, activity and solvency indicators balanced?
  • What financial indicators do you use to manage your business? Why?
  • And other questions.

We offer an enterprise performance analysis service, which graphically shows how a company is managed, how profitable it is, shows what model prevails over the years and generates profit / loss, why it is happening and what can be changed now.

This is a huge amount of information that allows you to plan your future business profitably, strategically ahead for several years, which is the priority of each manager to be on the market excellence and keep up the momentum as the market and customer needs change.

With the information you can immediately reorganize the activities and use the resources available to the maximum and take a higher position in the market …

How is this going to happen if you decide to perform an operational performance analysis?

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You order an analysis of business efficiency. Upon receipt of the order, we send an invoice for payment.

You prepare and present a 3-5 year corporate balance sheet, profit and loss statement, and if the company prepares cash flow statements.

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After receiving the financial statements, we make business efficiency estimates within 3-5 business days. The report is made up of 16 pages, consisting of company data, business and financial indicators, financial analysis, graphs, descriptions and recommendations.

We are discussing the assessment of business efficiency at the agreed time with the owner. Here is the time to talk about the current situation, ask questions and hear the expert’s opinion on how and why you can improve the current situation, how you can improve your business right now.

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With the clarity of the things that are invisible in the company, it can be done much more quickly and at lower cost with the existing team of employees.

If you want to participate in the change as an independent expert, we can agree as much as you want to participate in, at what intensity and at what time. Then, we can strive for business subtleties with your team and monitor how your results, attitudes and profits change in your work.

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